tv [untitled] July 22, 2015 6:00pm-6:31pm PDT
>> good morning everybody. welcome to the san francisco board of supervisors budget and finance sub-committee meeting for wednesday july 22, 2015. my name is mark farrell. i will be chairing the committee. i am joined by supervisor katy tang and i would like to thank the clerk linda wong and sfgtv covering this meeting. madam clerk do we have any announcements? >> yes mr. chair. please silent all cell phones and
electronic devices, complete speaker cards and documents to be part of the file should be submitted to the clerk. items acted on today will be on the july 28 board of supervisors agenda unless otherwise stated. >> okay. thank you madam clerk. let's get rolling here. we have a number of items here and at the end we have two hearings and please call item 1. >> item 1 hearing hearing to consider the release of reserved funds, arts commission to build out the secure basement storage space and related location costs for the city's civic art collection. >> great. we have tom mckinney here. >> good morning supervisors. as you know it will move to the veterans building in september of this year and our request is for the release of reserve funds for $50,000 to complete the move of the art collection to the war memorial. we are glad that the
capitol planning committee has allocated a historic amount for the art collection and afford us to the opportunity to properly store the city's civic art collection and by many artists. this is where the documentation for the civic art collection is stored as well as any works that are coming through for conservation and care so i have our senior registrar here alice coming to answer questions and we appreciate you're considering this item. >> thank you. mr. rose can we go to the report on item 1. >> yes mr. chairman and members of the committee it's shown in table one the arts commission budget for the relocation of the veterans memorial has been increased by 23% and the amount listed and from the original budget listed to the revised budget of one
1.4 million and page four we note that the use and sources moved to the war memorial building are in table two. we recommend that you approve the release of the $50,000 of the reserve. >> okay. thank you. any questions? we will move to public comment? anyone to comment on item 1? seeing none. public comment is now closed. [gavel] colleagues if no other comments i would like a motion to approve the release of funds. >> so moved. >> we will take that without identification. can you call item 1? >> mr. chair for clarification would you like to file item 1. >> yes. thank you. >> item two is a resolution authorizing the recreation and park department to accept and expend grant in approximately 130,000 from the san francisco parks alliance to support various recreation and park department operations for fiscal
year 2013, 2014. >> okay. i have rec and park to speak on this item. >> yes, i am with the recreation and park department. this gift from the san francisco parks alliance is one that we bring to the board of supervisors each year. the parks a liensz is the non-profit -- alliance is the non-profit partner of the parks and they ask as the fiscal sponsor managing 50 gift funds on the department's behalf and in fiscal year 13-14 the parks alliance contributed $133,961 from these gift funds to help sustain a wide variety of activities including the commemtive bench program and the four annual community events and improvements at camp mather and in natural areas and the volunteer program. thank you. i am happy to answer any questions. >> thank you very much.
colleagues any questions. no budget analyst report so we will move to public comment. anyone to comment? seeing none. public comment is now closed. [gavel] . >> i move approval of this item. >> okay. supervisor mar has made a motion and take that without objection. madam clerk call item 3. >> item 3 is for accept and expend grant for california department of water resources for a new recycled water facility at the san francisco international airport mel leong industrial wastewater treatment plant for a four year term through january, 2015 through december 31, 2018. >> welcome. >> thank you. i am with the san francisco international airport. this item seeks the authorization for the airport accept and expend grant a grant in the amount of $750,000 from the california department of
water resources through the association of bay area governments. in order to fund a portion of the upgrade project at the wastewater treatment plant last summer the california department of water resources awarded a $20 million grant to abag to fund water projects throughout the region. sfo received a portion of this grant in the amount of $750,000 to fund a project at the wastewater treatment plant to work on recycle water in use of landscaping and toilet flushing throughout the airport terminals this. is just one piece of a much larger upgrade to the wastewater treatment plant. the larger project includes pipes, pumps, treatment facilities and water storage tanks as well as new linkage to upgrade airport terminal systems. the contract for the larger upgrade project will come before the board of supervisors for your consideration in the fall but this simply asks for your authorization for the airport
to accept and expend grant the grant of $750,000. >> thank you. supervisor tang. >> thank you. can you talk about what the total is costing and the balance comes from? >> the larger project is part of the capital plan and this is a small portion of the larger project, and it comes from airport -- i believe it's bond revenue that will pay for the entire project. >> okay. thank you. >> okay. if no other questions mr. rose can we go to your report. >> mr. chairman and members of the committee on page 6 of our report is shown in table two a total estimated cost of the upgrade is listed amount and the proposed grant of 750,000 or 12.4% is funded from the grant funds and the balance of just over $5 million is paid by
airport revenue bonds. we recommend haw approve this resolution. >> thank you mr. rose. if no questions we will open it up for public comment. seeing none. public comment is now closed. [gavel] >> all right. through the chair make a motion to send this forward with a positive recommendation to the full board. >> okay. we will take that without objection. madam clerk can you call item 4. >> item 4 is accept and expend grant for the public health and 200,000 for public health to participate in a program called "san francisco bay clinical trials unit" for the period of december 1, 2014 through november 30, 2015. >> okay thanks. we have dph to speak here. >> i am sharon and i am representing the department of public health. this is a supplemental grant awarded through a joint program to
allow for collaborations between u.s. and brazilian investigators. this budget is funded a project in brazil to learn more about the size of the transgender population in rio deja dareo and prepare for a project in that city is -- now recommended globally by the world's health organization. however, there is no coordinated program to deliver this to transwomen in the area and the risk of hiv is high. the grant will fund a portion of [inaudible] dr. lou and mcgoldrick fallen for one year between the investigators in brazil. dr. mc fallen will
be training the team to measure the size of the trans population in rio. the other doctors have extensive experience in developing protocols for prep demonstration projects and providing that expertise to the brazilian team. thank you for considering this request to accept and expend grant. >> thank you very much. colleagues any questions. we will move on to public comment. anyone to comment on item 4? seeing none. public comment is now closed. [gavel] >> i move we approve this item and send to the full board with a positive recommendation. >> okay. motion by supervisor mar and take without objection. madam clerk can you call item 5. >> item 5 is a resolution retroactive three for the department of public health for a agreement with health care services to get reimbursement for children enrolled inlet healthy kids program and expend funds in the amount of up to 400,000 to finance the program
for the period of january 1, 2015 through june 30, 2015. >> okay. thank you very much. >> thank you good morning chairs and supervisors. my name is stella chow, the director of managed care for the san francisco health network of the department of public health. i'm asking for the approval of this resolution to retroactively enter into an agreement with the department of health care services to receive reimbursement for eligible for the kids in the healthy kids program and these funds to finance the program. this is a insurance program overseen by the department of public health and offers coverage to children 18 and under and at under the poverty level as listed that don't qualify for other programs. it also includes vision and dental coverage.
both of which are vital in providing preventive health care for children. as june 2015 healthy kids enrollment was under 2,000 members. the federal funds are helpful to support healthy kids by contributing towards continued operation and management of the program and resulting in no cost to the city and county to obtain these funds. as affordable health coverage the health care -- the healthy kids program promotes the health of all san franciscans and the proposed agreement require approval of the resolution by the san francisco board of supervisors. as a new unit we think the department of public health. the managers are organizing and reviewing requirements as stated in
multiple managed care agreements it oversees and made aware of the requirements from the department of health care services of approved resolution to accompany its agreement with the city and county. thus we are requesting your retroactive approval to satisfy the requirements of the agreement and continue with the healthy kids program. i thank you for your consideration and at this point the healthy kids program officer kath lean and myself are happy to address any questions that you have. >> thank you very much. colleagues any questions. okay mr. rose can we. >> to your report on item 5? >> yes mr. chairman. as shown in table two and page 10 of our report the net reimbursement to the county would be 119,443. we recommend that you approve this resolution. >> okay. thank you mr. rose.
seeing no other comments i will move this on to public comment. anyone wish to comment on item 5? seeing none. public comment is now closed. [gavel] >> thank you. >> thank you. colleagues do we have a motion to send it forward. >> so moved. >> motion by supervisor tang and take without objection. madam clerk can you call item 6. >> item 6 is approval of bookstore lease - books inc. and the city and for a five-year term with two one-year options for 575,000 during the first year of the lease. >> thank you. >> thank you. cathy wagner with the san francisco international airport. item number 6 seeks the approval for a new lease with books inc. for a book store comprised of the square footage listed in the airport and has a term through june 2020 and two one year
options to extend and minimum annual guarantee rent of $575,000 or a percentage of gross revenues whichever is greater and the result of a competitive process and books inc. receiving the highest store and the budget analyst office recommends approval and i am happy to answer questions. >> okay. thank you. any questions colleagues? mr. rose report on item 6? >> yes mr. chair on page 13 of the report we note under this lease they're required to pay the airport the greater amount as $575,000 or percentage rent and on page 12 the subject lease will generate guaranteed guarantee revenues payable by books inc. to the airport of at least 2.8 million over the term and that excludes cpi adjustments and we recommend that you approve the resolution.
>> thank you mr. rose. anyone wish to comment on public comment? seeing none. public comment is now closed. colleagues can i have a motion to send this forward. >> so moved. >> moved by supervisor mar. we will take this without objection. madam clerk call item 7. >> item 7 is lease agreement and lease between the hudson group retail in square footage and concession space and minimum annual guarantee of 555,000 for the board. >> colleagues we will continue this item and first we will open it up to public comment. anyone wish to comment on item 7? seeing none. public comment is now closed. [gavel] . can i have a motion to move this item? >> so moved. >> madam clerk can you call
item 8. >> item 8 is lease amendment lease bayport concessions and the city and premises and modified lease term and annual guarantee of approximately 130,000. >> okay. ms. wagner item 8. >> thank you chair farrell members of the committee. i am with the san francisco international airport. the next two items are similar to items you have seen recently where the airport is relocating current concessionaires to accommodate construction projects happening at the airport. this item, number 8, seeks your approval for the second amendment to our existing lease with bay port to relocate two willow creek concessions in terminal one and three. the board approved the first amendment to this lease in january of this year to replace a location in terminal three
scheduled for demolition. staff has determined that willow creek's location in terminal one needs to be relocated to accommodate that renovation work and determined that the replacement premise approved in january in terminal three is no longer feasible so there is a relocation of that space as well. the airport commission approved replacement of these terminals for the willow creek concessions. a new term of the lease and adjusted mag from $127,465 and the space will increase under the proposed amendment and the lease termination date for terminal one, the location in terminal one will be extended by two years and six months. this success treated as an extension of the current lease rather than going through a competitive request for proposal process
due to the irregular amount of time that would be involved we would have a hard time getting a new concessionaire to build on such a short lease. the term for the replacement premises for bay port will expire in january 2023 so the budget analyst office does recommend approval with the suggestion that the resolution be amended to take out any reference to the guarantee guarantee simply because that's not necessarily contemplated in the resolution as much as the change of location so it's a bit complicated but i am happy to answer any questions that you have. >> colleagues any questions? okay. mr. rose how about your report on item 8 please. >> yes mr. chairman and members of the committee on page 17 of the report we report that the airport estimates they will pay a percentage rate to the airport of 407,000-dollar. we
do recommend that you amend the resolution and approve the proposed resolution as amended. >> thank you mr. rose. if no other questions we will move on to public comment. anyone to comment on item 8? seeing none. public comment is now closed. [gavel] motion to send this forward. >> through the chair i make a motion to amend the resolution in reference to the budget analyst recommendation to delete the reference of the new mag and send with positive recommendation to the full board. >> okay. we have a motion by tang tangs. we will take that without objection. madam clerk can you call item 9. >> item 9 resolution for a lease with gotham enterprise and replacement leases for two years and the adjustments to the minimum annual guarantee of approximately 27,000. >> okay. thank you very much. ms. wagner.
>> thank you last item. the airport is seeking your approval for an amendment with the current lease with gotham enterprise doing business as petes coffee and tea to authorize replacement premises for the current terminal one location and to extend the lease for this replacement facility through september of 2019. the terminal one redevelopment program requires the closure of gotham enterprise peter's coffee concessionaire and this terminal location is part of a lease that we have with goth ham that includes three locations. in april of this year the airport commission approved the placement in terminal one and extension of the lease term in the new location. this applies only to this one location, not the other two locations that are part of the lease and they will pay the airport minimum annual
guarantee of $26,892 and/or whichever is greater and the airport treated this as an extension of the current lease rather than a new request for proposal for such a short amount of time and because it doesn't include provisions for the mag the budget analyst office has suggested doing this and if you agree i will get these amended this afternoon. >> okay. thank you ms. wagner. if no questions we will move on to santa rosa. your report on item 9. >> >> yes on page 20 of the report we report that the airport estimates that they will pay the amount listed in percentage rent to the airport in 2015. that is 921,000 more
than the 2015 minimum annual guarantee of 126800. we recommend that you approve the resolution to delete adjustment to the reference of the minimum annual guarantee of $26,892 and approve the resolution as amended. >> thank you mr. rose. colleagues any questions. let's move on to public comment. anyone to comment on item 9? seeing none. public comment is now closed. [gavel] we have an amendment by the budget analyst. >> i move that we accept the amendments by the budget analyst and adopt the item with a positive recommendation as amended. >> okay. motion by supervisor mar. we will take it without objection. call item 10. >> item 10 is approving and the ac sigz of one subsurface easement and one construction easement from kaiser foundation hospitals district for approximately 54,000 for the project known as the regional groundwater storage and recovery project.
>> okay. mr. updike. >> good morning chair farrell members of the committee. so this is authorization to get easements from the kaiser foundation hospitals district. these easements will facilitate construction related to the regional groundwater storage and recovery project. that boosts our regional dry water supply through the installation of groundwater walls and well stations. you have seen agreements at this committee before and there's a few more to come as well. this property is located on el camino real in san francisco. cities requiring a temporary construction easement and permanent telephone and electric easement to support the sfpuc facilities adjacent to the facility. and the cost is listed and pursuant to an appraisal which i approved. the san francisco public utilities commission authorized it which is in the board file and
adopted august 12, 2014 and that's all i have on this item. >> okay. thank you mr. updike. no questions mr. rose. can we go to the report on item 10. >> yes mr. chairman, members of the committee. in the report we report that it's shown in table one which is on page 23 of our report but based on 10,455 square feet and the cost of acquiring the easement is listed and funding was appropriated by the board of supervisors under the sfpuc water system improvement program. we recommend that you approve this resolution. >> okay. thank you mr. rose. colleagues any questions? we will move on to public comment. anyone wishing to comment on item 10? okay. seeing none. public comment is now closed. colleagues can i have a motion to move this forward. >> so moved. >> motion by supervisor tang. we can take it without
objection. madam clerk call item 11. >> item 11 requisition of the real property at 490 south van ness, the purchase price of $18,500,000. >> okay. we have the mayor's office of housing here. >> hello. the res before you is approve the acquisition of real property at 490 south van ness from the south van ness limited partnership benicia lake llc and maurice casey collectively referred as the seller for the agreed amount of $18,500,000 and the resolution ask that you adopt ceqa findings and consistent with the general plan under the code. there will be a deduction of transfer tax credited to the city upon closing as noted in the report and the final amount paid as
listed and creates 255,000 buildable units for the acquisition of this parcel in the heart of the mission neighborhood. 490 south van ness is currently vacant site zoned urban mix use. its former use was a gas station and now environmentally remediated and ready for development of the site is titled for a 72 unit multi-family development containing over 90,000 square feet of condition space with ground floor commercial and vehicular parking and ample high school parking. this represents the best efforts of the city and chunt community and recognizeing sites inlet the community and to the mission and if sites are identified and are available they will move with maximum dexterity and urgency to take
title of the project as soon as possible to create affordable housing in the neighborhood. this opportunity is unique given the fully entitled nature and have them thoughtfully to respond to the development on an expedited time line and serve low to moderate income households and 20% set aside for homeless families and with the city's goals of building out 30,000 units and a third being permanently affordable. the acquisition of this property is in addition to the pipeline in the neighborhood and they expect to close the transaction at the end of august and publish requests for proposals to procure a developer winter of this year. i would like to thank the city departments and the sellers and the community
for having this transaction take place and reacting to the dynamics to produce desperately needed opportunities for our city and specifically the mission. this concludes my presentation. i am available for questions. i brought a rendering so you have an idea of what the project looks like now and we hope to build in the new future. >> okay. thank you very much. supervisor mar. yes thank you kevin and the mayor's office of housing and development. this is from a gas station to 72 units of permanent affordable housing and it's great and i know we need to do more but what a great example how the city can address the housing crisis in creative ways. thank you. >> thank you. mr. rose can we go to your report. >> yes mr. chairman and members of the committee. on page 27 we report in june 2015
the real estate division conducted an independent appraisal of the 490 south van ness property and determined the fair marshal value as of -- fair market value is listed and as the department indicated we report on page 28 of the report that the purchase sale certifies that the purchase price will be reduced by a credit of 462500 the amount of the real estate transfer tax that would otherwise be due on the transaction and pursuant to the city's business and tax regulations code. that section specifically exempts payment of the transfer tax for the purchase of property property of the city and as a result